The major virtues of the market system include all of the following, except
A)it promotes an efficient allocation of resources.
B)it leads to equality in the distribution of income.
C)it provides incentives for greater production and higher incomes.
D)it emphasizes the freedom to pursue self-interest.

Question

Quizplus · Accepted Answer

The market system, while efficient in allocating resources and promoting production and income through incentives and self-interest, does not inherently lead to equality in the distribution of income. This is because market outcomes depend on initial resource endowments, abilities, and opportunities, which can vary widely among individuals.

The Major Virtues of the Market System Include All of the Following